Hahndorf (pop. 1700) lies in a beautiful upland region and is a settlement originally established in 1839 by German Protestants from East Prussia immigrants, with tree-lined streets, typically German half-timbered houses and Lutheran churches with steeples. In 1988 Hahndorf, the second oldest German settlement in Australia, was declared a State
Heritage Area. The town takes its name from one Captain Hahn who helped the new settlers to find land.
Among the town's handsome buildings are the Old Mill (1864; now a restaurant and motel), the Old Windmill (1842; renovated 1966), the German Arms Hotel (established 1839; present building ca 1868), St Michael's Church (1856) and the Hahndorf Inn (1858). The local museum, the Settlers Hill Heritage Collection, Clock Museum has a collection of old clocks, various relics of pioneering days and a model railroad layout. The German Train Village will appeal to railroad enthusiasts.
In the former schoolhouse (1857) is the art gallery of the Hahndorf Academy.